US medical device maker Stryker to acquire Hong Kong-based Trauson for $764 mn
17 Jan 2013
US medical equipment maker Stryker Corp today said it will acquire Hong Kong-based orthopaedic products maker Trauson Holdings Co Ltd for $764 million in cash in order to expand into China.
Michigan-based Stryker is offering to pay HK$7.50 ($0.97) per ordinary share, a 45-per cent premium to Trauson's closing price on 8 January, when trading of its stock were halted on the Hong Kong Stock Exchange.
Luna Group, Trauson's controlling shareholder with 61.7 per cent stake, has accepted Stryker's deal and agreed to tender the stake to the offer.
Founded in China in 1986 by chairman Fuqing Qian, Trauson had 2011 sales of around $60 million and is the leading trauma devices manufacturer in China and a major force in the spine prducts segment.
The company sells approximately 100 products under the Trauson and Orthmed brand names. It sells its products through a distribution and sales network of 450 distributors covering approximately 3,000 hospitals.
Stryker and Trauson have maintained a relationship under an OEM agreement for instrumentation sets since 2007.